Showtime to offer programs through iTunes

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showtime networks, which is owned by the cbs corporation, announced it has teamed up with apple to offer some of its programming on itunes. showtime joins other networks such as nbc universal, abc, and the disney channel, which also offer programming on itunes. some shows will be offered for download, such as sleeper cell, weeds and fat actress. the cost is us$1.99 per episode.

it's not surprising for more and more networks to follow the crowd and put some of their more popular shows on itunes for download. apple created an incredible new revenue stream for networks that only a couple of years ago was unimaginable. networks got a taste by offering shows through dvds, but now find that offering per show purchases through itunes is also a great way to increase the return rate on their programming investment.

it amazes me(10:15am est thu feb 09 2006)when a simple idea is executed perfectly into a viable business model – apple's successes are neat to follow. – by topher's a tard

overpriced as usual(12:43pm est thu feb 09 2006)$1.99 per episode? i'd say wait and buy the dvd for the whole season for probably less than half the price per episode. this mirrors the horrible $.99 per song price for music. buying entertainment a la carte online is simply very, very expensive.

i guess if people are willing to pay these prices, then apple and others will keep charging them (making money hand over fist). – by jrink

er?(2:03pm est thu feb 09 2006)“$1.99 per episode? i'd say wait and buy the dvd for the whole season for probably less than half the price per episode.”

considering that most showtime and hbo seasons are 13-15 episodes, that equates to only $26-$30 per season.

considering that amazon.com is offering the first season of the l word for $46.99, your comment doesn't make much sense. – by rocketpig

jrink(2:51pm est thu feb 09 2006)“$1.99 per episode? i'd say wait and buy the dvd for the whole season for probably less than half the price per episode… buying entertainment a la carte online is simply very, very expensive.”

huh?it has more to do with convenience and time than “a la carte online.” convenience, as in for many people who commute on trains and buses, watching their programs then makes better use of time, and they're willing to #1 buy the ipod and #2 download it the day after broadcast to watch on the way to work and on their lunch break. easier than even setting the vcr.

then the time factor: going to a movie in the theatre is more expensive, a lot more expensive, than waiting for release on dvd, because you get to see it sooner (and you can see it at the cheap theater some months later).

in time, old episodes will become cheaper downloads, but the demand is very high for these episodes now, because this is a new medium. when older episode demand wanes, the price for them will drop, keeping the $1.99 range for new, high-demand programming.

this is actually finally going to be an alternative to cable/satellite holdouts like me who don't want to pay for channels we don't watch. it will take a while to become more price competitive, but that's the direction its heading.

obviously, too, as technology progresses, the resolution of the video will increase, bandwidth will become less of an issue, and overall prices will drop. – by rotgut

weeds(3:14pm est thu feb 09 2006)is a funny show. i watched the whole season three days before it was on itunes. the theme song is crazy as well. – by money makin mac man

you gets what you pays for(5:07pm est thu feb 09 2006)sorry, guys, but i still think $1.99 for a single episode of a tv program is a bit steep. same with $.99 for one song. in either case, you are paying more for the ability to pick and choose. if you're willing to pay that price, then that's ok.

rocketpig, i don't subscribe to any of the 'premium' tv services, so i was not aware that there were so few episodes per season. if they are charging that much for the dvd, then i say they are sticking it to you two ways instead of one.

rotgut, you did open my eyes to some things i had not considered, the time factor and convenience. that convenience comes with a cost, just like paying $1 more for milk at the gas station instead of the grocery store.

i doubt we'll see any prices going down for old content. go to a music store and look at the price for something like “tatto you” by the rolling stones. i'll bet the price tag is within 10% of a new cd. i haven't seen many stories about online music stores offering lower prices for older music, either. if there's a demand, they'll chage full price. if there's not demand, they'll pull it from the shelves. – by jrink

you get what you want…(6:32pm est thu feb 09 2006)instead of wanting what you can't get!

i personally have not purchased a single itune, nor itvshow, because it is not my thing, i don't make much time for tv, never sports, because i have a lot going on. but, there are people i know who work all day, and relax hard all evening in front of the tube, and they pay a lot of money for their video equipment, tivo, and satellite or digital cable. and i know more and more people riding the bus and rail to work with gas prices fluctuating. combine the two, and a bit of disposable income, and you have a demographic i can understand, but not relate to.

you may be right that older content won't go down in price, but i think there will be “specials” and “mix bundles” offered, say 10 oldies for $6.99 or some such. the old retail conditions do not apply…

“if there's not demand, they'll pull it from the shelves.”that does not apply here. a traditional retailer has limited shelf space and thus has to think that way– opportunity cost in economics. an online digital song merchant does not, as long as they pay a royalty fee per song sold. if certain songs never sell, it costs them nothing to keep them “in stock” and available should demand suddenly spike, as it does when old songs are used in movies, an artist dies, or someone does a remake.

trust me, every old cd you see selling for close to the price of a new one sells enough for the merchant to: #1 keep it in stock, and #2 allow it to take up space on the shelves that something else which has a higher demand could occupy. there are other issues, too, such as the cost to the retailer of old vs. new, etc., but that's the basic economics of it.

i am quite sure that pricing schemes will become more complex, but price per unit digital music will dominate the subscription model for years to come, with high school/college age preferring the subscriptions and older folks preferring to buy what they want and then be able to keep it.